The average price range is $250k to  $350k depending on area for a three bedroom two bath house.

It is a small 5 bedroom single family house located in Minnesota. 

@Eric Gamble It seems like it would be prudent to compile some (based on what your strategy is) quick & easy screen out parameters...ie, in said desirable area, if 3 bedroom houses are generally the most in demand by buyers who would buy your wholesale deals, start there...that kind of thing...no 2 beds, no 4 beds, etc.

Purchase price: $25,000 Cash invested: $13,097 Three bedroom, one bath, detached one car garage, front porch, back patio and deck.

Most likely the windows will need to be changed to egress windows in bedrooms.  

The footprint of the home is staying the same but we are changing it from a 2 bedroom 1 bathroom to a 3 bedroom 2 bathroom.

There is no magic formula, but there are some interesting strategies he uses (nothing illegal), just some creativity involved to get to the front of the list, eventually.If someone doesn't want to sell today does not mean they wouldn't want to sell tomorrow. 

The house worked very well, I took the shabbiest bedroom and fixed the rest of the house up as I could.

You have a ton of options, but I think the most important is realizing that you should shift that equity to start working for you whether it be through sale, refi, HELOC or other creative strategies.

They are renting for $575 but where I am 2 bedroom 1 baths are going for no less that $800.